For the Complainant - Mr. Pintu Karar, Advocate
For the OPs - Mr. P.K. Srivastava, Advocate
FINAL ORDER/JUDGEMENT
SHRI SWAPAN KUMAR MAHANTY, PRESIDENT
This is an application u/s.12 of the C.P. Act, 1986.
Brief facts, as stated in the petition of complaint, are that the OP-2 Citi Bank issued a Credit Card bearing No. 5546377012889772 to the complainant, complainant used the said credit card and paid the bill amount to the OPs. Complainant was cheated by a stranger over telephone, on the following day complainant lodged complaint to the OPs about fraudulent transaction being made through his credit card and he requested the OP-2 to block the card. OP-2 raised bills against those fraudulent transactions. Complainant being a reputed business man approached the OP-2 for resolving the issue. However, it did not yield any positive result. Instead, the OP-2 claiming to clear the disputed bills. Being aggrieved against the activities of the OPs, the complainant approached this Forum by way of consumer complaint seeking reliefs as per prayer.
Per contra, the case of the OPs is that online transactions through credit card is highly secured as such transactions can only be possible if one time password (OTP), which is sent on the registered mobile No. of the credit card holder is used for the said transaction. Complainant admitted that he shared the confidential details with the tele-caller of Mobile No. 07317285918 which resulted the disputed transactions took place. The disputed transaction had been carried out prior to blocking the credit card. The payment settlement between the Merchant Establishments (MES) & the OP/Bank happens electronically without movement of any physical documents. The card issuing bank is obliged to make payment of valid debit charge to the Merchant Establishment and the amount is liable to be debited from the account of the card holder. Based on the complaint of the complainant, OP-2 investigated and found that all the disputed transactions were carried out under secure made by validating OTP sent to the registered mobile of the complainant. The credit card remained with the custody of the complainant all through, it was not possible for anyone to misuse the same. Therefore, there is no deficiency in service on the part of the OPs. The OPs have denied to accept any liability on their part and have also prayed for dismissal of the complaint.
Decision with Reasons
Parties are allowed to lead their respective evidence in support of their case.
We have heard the Ld. Advocate of the complainant. Ld. Advocate for the OPs did not participate in the final hearing.
It is not in dispute that the complainant had obtained a credit card bearing No. 5546377012889772 from OP-2. In the consumer complaint, the complaint has specifically stated in para-6 that he was fraudulently cheated by a stranger over telephone conversation and OP-2 raised three bills dated 22.04.2016 for Rs. 2,499/-, Rs. 2,499/- and Rs. 4,800/- respectively. The credit card was blocked on the request of the complainant after disputed transaction had been carried out. The banks have cautioned general public through repeated advertisements/SMS that they do not make phone calls to customers for sharing their PIN, Expiry Date, CVV and Car Number. Admittedly, complainant shared the confidential details of his credit card to the tele-caller of Mobile No. 07317285918 which resulted the disputed transaction took place. Based on the complaint of the complainant, the OP-2 investigated the grievance of the complaint and found that all the disputed transactions were carried out under secure mode by validating one time password (OTP) sent to complainant’s registered Mobile No. 9330074150. The OTP for online transactions can be created only by providing confidential information i.e. Credit Card Number, Card Verification Value, Card Expiry Date and name of the Customer as on credit card. As per guidelines of RBI, the bank immediately notifies the customers about transactions on their account through SMS on the registered mobile and email alerts on the registered email transaction alerts were sent to the registered mobile number of the complainant. It is also true that complainant never change his registered mobile number with the OPs/Bank to which the OTPs were sent.
That OTP is auto-generated for each and every online transaction as a precautionary measure. It is not at all believable that there was any exception to this usual norm in respect of the disputed transaction as well. The OPs have further claimed that their investigation revealed that the said transactions were made using complainant’s credit card itself. The credit card was in the custody of the complainant throughout, probability of unauthorized transaction was next to impossible. No doubt, there have been fraudulent transaction but in all probability, these fraudulent transaction occurred due to sharing card details by the complainant to the tele-caller of Mobile No. 07317285918. There can be no manner of doubt that the OP-2 blocked the credit card promptly on the complaint of complainant.
The payment settlement between the Merchant Establishments and the OPs/Bank happens electronically without movement of any physical document. As per Industry practice and association rules when a valid debit charge is received from Merchant Establishment, the card issuing bank is obliged to settle the bill amount and such amount is debited from the account of the credit card holder.
Card Member terms & conditions which outline the guidelines followed by the Bank for secured disputed transaction:-
24.6 The Card member is responsible for the security of the card and shall take all steps towards ensuring the safekeeping thereof. The Card member should not handover/share the card/PINs to the third party even if the person is claimed to be representative from Citibank. In the event Citibank determines that the aforementioned steps are questionable, financial liability on the lost or stolen card would rest with the Card member acknowledges and agrees that he will be for all loses in the event he has acted fraudulently or negligently. Further, if the Card member acts without reasonable care, the Card member agrees that he shall be liable for all losses incurred as a consequence thereof. This may apply if the Card member fails to follow the safeguards as specified by Citi bank in the terms and conditions or otherwise.
Further as per clause No. 22.6, in case the Card member shares his confidential card details including PINs with a third party, the Card member and not the bank will be liable for all losses incurred as a consequence thereof.
The Card member is responsible for the security of the card and mobile device which has the mobile number registered with bank to receive OTP and shall take all steps towards ensuring the safekeeping thereof. The Card member should not handover/share the card/PINs/OTP to third party even if the person is claimed to be representative from Citi bank. In the event, Citi bank determines that the aforementioned steps are questionable, financial liability on the lost or stolen card or financial liability incurred due to misuse of OTP for any reason whatsoever including but not limited to stolen or lost mobile device or SIM Card would rest with the Card member and could even result in cancellation of the Account. The Card member acknowledges and agrees that he will be liable for all loses in the event he has acted frequently or negligently. Further, if the Card member acts without reasonable care, the Card member agrees that he shall be liable for all losses incurred as a consequence thereof. This may apply if the Card member fails to follow the safeguard as specified by Citi bank in the terms and conditions or otherwise.
Keeping in view of the facts, we are of the considered view that there was no deficiency in service and/or unfair trade practice on the part of the OPs. We do not find any merit in the instant case.
Thus, the consumer case is liable to be dismissed.
Hence,
Ordered
That the consumer case be and the same is dismissed on contest against the OPs. Parties to bear their respective cost.
